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Cadillac Is Trying To Whittle Down Its Dealer Network

(Credit: Cadillac)

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Cadillac Is Trying To Whittle Down Its Dealer Network

Cadillac logo

Cadillac logo (Credit: Cadillac)

As Cadillac prepares to really take on the big German luxury brands, it has one tricky obstacles: its dealer network. In the United States, there are many small, long-time Cadillac dealers that simply aren’t equipped to evolve with the brand.

The solution: Cadillac is offering them cold, hard cash. That’s right, 400 small Caddy dealers are being offered $180,000 to give up their franchise. Cadillac is doubtful they can keep up with sweeping changes coming, which will transform the entire experience of buying and owning a Cadillac.

This is coming from an Automotive News report, which cites brand president Johan de Nysschen stating that there simply are too many Cadillac dealers. At the same time, he denies that the brand is trying to force any dealers out of the network. The offer to buy out certain dealers seems to contradict that statement.

If it’s any consolation, pretty much all of these small Cadillac dealers sell other GM brands. In other words, they probably wouldn’t have to close down for good. Instead, they’d sell more Buicks, GMCs or Chevrolets to make up for the loss. Considering Automotive News says all of the dealers eligible for this offer sold under 50 new Caddies in 2015, $180,000 seems pretty generous.

Dealers have until November 21 to take the deal. If they do, by the end of 2017 those dealerships will stop selling new Cadillacs. Smaller dealers that don’t take the money might not have any new cars in stock, but instead will have to go with a new “virtual showroom.”

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